Commercialization of knowledge and ideas has been a great challenge for finding sustained growth paths for firms and countries. Hence, some firms and also countries are spending billions in generating and experimenting with ideas. In fact, the current venture capital financing rush for Startups has been for extracting value from the market out of ideas. Although Innovation success appears to be magic, however, there appears to be a systematic way for ferreting out value. In retrospect, Corning’s journey is a great example of producing knowledge and ideas and turning them into economic value.
Corning is known for producing high-grade glass products. Instead of natural resources and skilled labor, Corning focused on the commercialization of knowledge and ideas in glassmaking. Since ancient times, human beings are making glass and glass products. Glass is made from an abundant resource—Silica. Silica is the major constituent of sand. It is one of the most complex and abundant families of materials, comprising as high as 10 percent by mass of the earth’s crust.
Glassmaking history dates back to at least 3,600 BC in Mesopotamia. Moreover, the glass-making technique got distributed all across the world. For example, the first Persian glass came in the form of beads dating to the Late Bronze Age, 1600 BC. Besides, Glass-making evidence is found in India in 1700 BC. Similar evidence is also found in other parts of the world, starting from China to the Islamic world.
Corning’s journey of commercialization of knowledge and ideas in glassmaking began in 1851
There is no doubt that glassmaking started as a tinkering approach. Craftsmanship, like Glassblowing, was at the core for centuries in glass making. Labor and energy were the main ingredients in turning abundant natural resource Silica into glass and glass products. For centuries, labor in the form of craftsmanship was the source of competitive advantage in the glassmaking trade. However, Corning took a different path. The founding family of Corning, the Houghtons, looked at it from a different perspective. They saw research and development as a way to gather knowledge and generate ideas for improving the glass, glass products, and the process of making them.
Hence, they embarked on an entrepreneurial journey in 1851 for the commercialization of knowledge and ideas in glassmaking. It was their strategy to stand out in a landscape thick with rival glassmakers. Therefore, instead of sourcing cheaper energy, ingredients, and labor, Houghtons decided to distinguish Corning from the competition with a deep knowledge of the makeup, chemistry, and physics of glass. Thus, as opposed to craftsmanship or imported capital machinery-based replication, the invention and innovation journey began in glass making.
Edison’s light gave a boost to Corning’s commercialization of knowledge and ideas in glassmaking
In 1879, Thomas Alva Edison approached Corning with his idea for the lightbulb. However, he did not need just a copy of what existing glass technology could do. Instead, his light bulb demanded encasement of the delicate filaments made of glass that was stronger and more damage-resistant than glass typically used in windows and jars. Hence, Corning relied on the flow of knowledge and ideas from R&D to meet Edison’s light bulb requirement. Besides, in addition to making glass stronger and more damage-resistant, Corning also focused on the process of making those encasements.
The cost of production of each light bulb was a barrier to the diffusion of Edison’s innovation. At that time, a skilled craftsman used to produce bulbs by hand, one piece at a time. Hence, for reducing the cost of production, Corning focused on reducing labor content. Later, Corning succeeded to develop a new manufacturing process that would mass produce these bulbs, making Edison’s electric lamp more affordable to the masses. Since then, even to date, Process innovation has been an integral part of turning product ideas into commercial success for Corning.
Institutionalization of R&D capacity at Corning
In 1877, Corning received the first patent. It was the patent for a lens that was designed to be resistant to breakage caused by the heat from lamp flames. However, to ensure a steady flow of knowledge and ideas in its glass-making commercialization process, Corning recruited Dr. Eugene Sullivan from Germany to establish one of the first industrial research departments in the United States. His expertise in silicate chemistry made him the ideal choice for leading Corning R&D. Subsequently, physicists, chemists, and optical scientists at the lab increased the world’s understanding of the properties and potential of glass.
Meeting increasing new requirements—the strategy for progressing with the commercialization of knowledge and ideas in glassmaking
In 1912, Corning gave the solution to American Railway for dealing with the problem of glass globes of signal lanterns that used to shatter due to thermal expansion caused by extreme temperature changes. Corning developed a heat-resistant low expansion glass that withstands sudden jolts of heat and cold. Hence, railroads needed far fewer replacements, and eventually, demand started to dwindle. Subsequently, Corning scientists began to investigate new applications for this material to scale up the commercializing of knowledge and ideas developed to meet the unique railway requirements.
Furthermore, the journey of producing heat-resistant glass lead to Corning’s success in the innovation of a line of highly durable cookware and laboratory glass products still available today. This is under PYREX® brand. Furthermore, along with the invention of better glass, Corning kept focusing on improving the production process of producing glass products. One of the milestones had been speed ribbon machine innovation in 1926, which started producing 400,000 bulb blanks in a 24-hour period–about 5 times the output of earlier machines. Subsequently, this production process substantially lowered the production cost of Radio bulbs, making Radios affordable to the mass. In the 1920s, Corning also embarked on producing large glass bulbs for cathode ray tubes (CRTs), used in making Oscilloscopes and TVs. Hence, like what it did for the light bulb, in 1947, Corning revolutionized the television industry by inventing a process to mass-produce TV picture tubes.
In 1952, the accidental discovery of Corning Scientists Dr. S. Donald Stookey made new glass-ceramic material. It resulted in a new business for Corning – CorningWare®. Moreover, as part of process innovation, in 1964, Corning scientists Stuart Dockerty and Clint Shay develop the fusion overflow process to produce flat glass. This process innovation played a key role in forming Corning’s liquid crystal display glass substrates business.
The journey of commercialization of knowledge and ideas in glassmaking led to fiber optics
In 1970, Corning’s R&D team comprising of Drs. Robert Maurer, Donald Keck, and Peter Schultz developed the first optical fiber capable of maintaining laser light signals’ strength over significant distances. Subsequently, it paved the way for the commercialization of fiber optics for telecommunications.
Meeting the glass innovation need for displays of the information age
As the ordinary glass was not precise, stable, or durable enough to meet their requirements of active-matrix liquid crystal displays (LCDs), Corning’s “fusion” process made the glass that filled the bill perfectly. Moreover, this advancement has led to today’s Corning’s highly profitable business in LCD. Like Edison, Steve Jobs also approached Corning to make thin and light glass enough for mobile devices, but still tough enough to resist the scratches, bumps, and drops of everyday use. It led to the Gorilla® Glass invention.
Corning’s decision-making process for commercializing knowledge and ideas
Its strategy has been inventing a component that enables a complex system, protecting it with IP, and developing world-class manufacturing processes to make it. Hence, it knowledge generation and exploitation process goes through a five-stage process as shown:
- Stage I → Gather information, build knowledge;
- Stage II → Determine feasibility;
- Stage III → Test practicality;
- Stage IV → Prove profitability;
- Stage V → Manage the lifecycle.
Decisions on whether to move ahead on an early-stage program largely depended on answers of the following questions:
- Is the opportunity large?
- Is it connected to a “megatrend”?
- Is the problem significant – requiring a step change in cost or capability?
- Is the hypothetical (quantified) value proposition compelling?
- Is Corning’s approach unique? Is there a possibility for significant differentiation?
- Is there a good fit with Corning skills?
- Are the required resources available?
Corning’s almost 170 years journey has been in the production and commercialization of knowledge and ideas in glassmaking. Its achievements are led by the progress which is being made by Scientists in the R&D center. Each of those scientists is the source of knowledge and ideas which Corning commercializes. For example, Dr. George Beall’s four-decade-long career at Corning led to receiving his 100th patent in 2004. In 2018, Corning invested 10 percent of its $11.4 billion revenue in R&D. Hence, Corning’s journey is a wonderful example of turning labor and also material-intensive industry into a business of production and commercialization of knowledge and ideas.
Corning’s underlying strategy–a repeatable pattern for systematic ferreting out value
Corning always focused on meeting requirements which existing glass technology could not deliver. In history, it kept undertaking assignments for pushing the technology envelope. For example, Corning designed and produced a 200-inch mirror blank for the Hale Telescope at Mount Palomar. At that time, it was the world’s largest piece of glass. Similarly, in the 1990s, Corning delivered a high-precision mirror for the Hubble Telescope. Subsequently, Corning leveraged knowledge and ideas gained from those assignments in commercial innovations. Furthermore, in addition to product, Corning equally focused on process innovation to reduce production costs and ensure consistent quality. Therefore, Corning’s journey offers an invaluable lesson to those countries and firms who would like to upgrade from natural resources and labor to the production and commercialization of knowledge and ideas.
